Ecobank ties Africa to China’s trade finance network

Ecobank’s new partnership with China’s CIPS system represents a turning point in how African businesses manage trade and currency risks. The deal, finalized in Beijing earlier this month, links 34 African countries to China’s cross-border payment network. This move could lower costs and expand financial choices for exporters and importers across the continent.

The agreement builds on a decade of Ecobank’s gradual expansion into China. The bank established its Beijing advisory office in 2012 and signed a cooperation deal with Bank of China (Mauritius) in 2025. Now, the latest initiative aligns with China’s broader strategy to integrate African financial systems through CIPS, a platform launched by the People’s Bank of China in 2015. The system facilitates transactions in RMB without depending on the US dollar.

For African businesses, the most direct advantage may be reduced transaction costs. Importers purchasing machinery or raw materials from China will no longer need to convert local currency into dollars before converting to RMB. Exporters could receive payments directly in RMB if Chinese buyers choose that currency. Eliminating two currency conversions removes fees and exchange-rate risks, creating immediate savings.

CIPS’s global reach and Africa’s slow start

Ecobank’s position in this system extends beyond its own operations. The bank’s pan-African network—covering 34 countries—acts as a bridge between African markets and China’s financial infrastructure. Its $801 million profit in 2025, a 21% increase from the previous year, demonstrates its growing influence. However, the broader impact may lie in how this partnership pushes African banks to modernize.

CIPS already handles over $94 trillion in transactions, connecting 5,000 financial institutions across 190 countries. Africa’s involvement remains limited, with only 9 direct members and 112 indirect participants, mostly subsidiaries of Chinese banks. Standard Bank joined in late 2025 and processed CNY 8 billion (about $1.2 billion) through CIPS by July 2026, illustrating the commercial potential. For African-owned banks like Ecobank, the task is to develop their own RMB capabilities rather than depend on Chinese subsidiaries.

China’s trade dominance and RMB’s risk hedge

China’s dominant trade role in Africa makes this partnership especially relevant. In 2024, China is a leading export destination for 19 African countries and the leading import source for at least 20. Togo, Ecobank’s headquarters, saw bilateral trade with China reach $5.43 billion in 2025, a 55% increase from the prior year. For businesses in these markets, RMB settlements could reduce exposure to dollar volatility, a persistent risk when imports or loans are tied to a single currency.

The shift toward RMB extends beyond trade. African financial institutions are increasingly managing assets, securing funding, and meeting obligations in multiple currencies. Demand for RMB-denominated products, such as deposits and bonds, is rising, though offerings remain limited to basic instruments. A broader range of financial tools linked to China could provide banks and investors with greater flexibility, particularly during market instability.

This partnership also supports Africa’s efforts to strengthen financial integration. The Pan-African Payment and Settlement System (PAPSS), designed to simplify cross-border payments in local currencies, complements CIPS by focusing on intra-African trade. While PAPSS reduces reliance on foreign currencies within Africa, CIPS extends this approach to China. Ecobank’s participation in both systems suggests a strategy to reinforce regional payment networks while improving connections to global markets.